Tim Hortons Inc. (USA) (THI): Insiders Aren’t Crazy About It

Page 1 of 2

Is Tim Hortons Inc. (USA) (NYSE:THI) a buy, sell, or hold? The best stock pickers are turning less bullish. The number of bullish hedge fund positions stayed the same which is a slightly negative development in our experience

Tim Hortons Inc.To most traders, hedge funds are seen as underperforming, old investment vehicles of the past. While there are greater than 8000 funds with their doors open at the moment, we hone in on the elite of this group, about 450 funds. It is estimated that this group has its hands on the majority of the smart money’s total asset base, and by tracking their best stock picks, we have deciphered a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 23.3 percentage points in 8 months (see the details here).

Just as important, bullish insider trading sentiment is a second way to parse down the world of equities. Just as you’d expect, there are a number of incentives for an upper level exec to drop shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if you know what to do (learn more here).

With all of this in mind, we’re going to take a look at the recent action surrounding Tim Hortons Inc. (USA) (NYSE:THI).

How have hedgies been trading Tim Hortons Inc. (USA) (NYSE:THI)?

Heading into Q2, a total of 11 of the hedge funds we track were bullish in this stock, a change of 0% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes significantly.

According to our comprehensive database, Highfields Capital Management, managed by Jonathon Jacobson, holds the biggest position in Tim Hortons Inc. (USA) (NYSE:THI). Highfields Capital Management has a $330.5 million position in the stock, comprising 3% of its 13F portfolio. On Highfields Capital Management’s heels is Luxor Capital Group, managed by Christian Leone, which held a $153.5 million position; the fund has 2.9% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include James Crichton and Adam Weiss’s Scout Capital Management, Frank Brosens’s Taconic Capital and Jim Simons’s Renaissance Technologies.

Due to the fact that Tim Hortons Inc. (USA) (NYSE:THI) has faced bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there were a few money managers who sold off their positions entirely heading into Q2. Intriguingly, Glenn Russell Dubin’s Highbridge Capital Management sold off the biggest investment of the “upper crust” of funds we watch, valued at close to $0.6 million in stock., and Matthew Tewksbury of Stevens Capital Management was right behind this move, as the fund cut about $0.5 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading Tim Hortons Inc. (USA) (NYSE:THI)?

Bullish insider trading is best served when the company in question has seen transactions within the past six months. Over the last six-month time period, Tim Hortons Inc. (USA) (NYSE:THI) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Tim Hortons Inc. (USA) (NYSE:THI). These stocks are Domino’s Pizza, Inc. (NYSE:DPZ), Dunkin Brands Group Inc (NASDAQ:DNKN), Darden Restaurants, Inc. (NYSE:DRI), Burger King Worldwide Inc (NYSE:BKW), and Chipotle Mexican Grill, Inc. (NYSE:CMG). This group of stocks are in the restaurants industry and their market caps are similar to THI’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!